Stimulusgate

Sinclair Davidson

Agenda - A Journal of Policy Analysis and Reform, 2011, vol. 18, issue 1, 5-12

Abstract: The Australian government's 2010 Budget Papers present econometric evidence that purports to show a positive and 'highly statistically significant' relationship between the size of stimulus spending and subsequent economic growth in a sub-set of G20 countries. The analysis concluded that those countries, such as Australia, that adopted early and large fiscal stimulus packages had subsequently outperformed those that had not done so. This analysis, however, turns on an untenable and substantial truncation of the available sample, and suggests a failure of quality- control processes with Treasury.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:acb:agenda:v:18:y:2011:i:1:p:5-12

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